Chinese manufacturing activity contracts Third month contracts

Chinese manufacturing activity hired a third month in June, an official survey showed on Monday, although the efforts of Beijing’s stimulus to stabilize certain aspects of the industrial sector.

The Official Buyer Managers Index (PMI) improved somewhat in June 49.7 and May 49.5, but 50 below the reference, depending on the expansion of the subheadings National Statistical Office Data. This figure matched the predictions of the analysts conducted by Reuters survey.

Az-index Tracking production rose to 51 and the expansion of the applications rose to 50.2, indicating the improvement of industrial activity and demand according to NBS Statistics Statistics Qinghe Zhao.

However, inventories and employment levels, however, continued to fall, 48 to 47.9, respectively.

It includes non-manufacturing PMI, services and construction, rose to 50.5 in May. The sub-index of the services slipped to 50.1 while accelerating the construction 52.8, as the infrastructure projects continued to make a relatively rapid rhythm.

Mainland China’s reference CSI 300 index jumped 0.22% following data release.

“The Chinese economy retrieved a few moments, a bounce on manufacturing and construction,” said Zichun Huang, Chinese economists in Capital Economics. “But in the point of view we play, the weaker growth of exports and the tail of the Fadinu is disappearing in the second half of the year.”

The export orders of PMI manufacturing PMI has improved significantly from 44.5 to 44.7 earlier. We can give a bounce to US buyers, Beijing and Washington in mid-May, Huang said following the trade truce.

Chinese manufacturers have grappling with a deeper price among a slow demand for glute and consumers, our exports were worsen to the highest US rates in the world’s largest consumption market.

Country shipments to the US Immersed by 34.5% in May Over 21 years ago, exporters went to alternative markets to prevent a trifular rate thrown in mid-May.

Premier Premier by Li Qiang said in a key economic forum of Tianjin last week. “Consumption power”.

This year, consumer prices also deviated, Fell by 0.1% in May a year earlier.

Wholesale price width, or saw producer price index The biggest decline since July 2023 In May, he determined the manufacturing sector for two years deepening in a deflation. Profits of industrial industrial companies were immersed by 9.1% in May The most demanding decline in seven months.

Complementary fiscal stimulus would be essential to encourage consumer demand, Tommy XIE, Head of High OCBC Research in China, said CNBC’s Squawk Box Monday. “We’ll see more vouchers, more (consumer goods) program programs … We hope more debt issuance in the second half can take the local government and central government to fire power.”

On Friday, the Chinese Ministry of Trade with Washington had more detailed trade details, without indicate that China is eligible and accepted requests for exporting items.

While the statement was seen as a gratifying sign of commercial lectures, economists had certainly left the lack of detail, as well as what criteria to evaluate the application for exporting the rare Earth magnet.

“It can emphasize hard and accurate commercial talks,” Wendy Cutler said, vice president of the Institute of Political Asian Society, both sides that both sides are working.

A Separate separation On the weekend, the Ministry of Trade confirmed the opposition against other countries with other countries that seek relief with the US will jeopardize Chinese interests in any agreement. “If such a situation happens, China will not accept and take control of the decisions to take care of its rights and legitimate interests,” said the statement.

Tuesday, Caixin Media and S & P Global is a private survey of Chinese manufacturing activity, which is expected to improve from 48.3 to 48 to 48, according to the Reuters survey.